Does your business need a chief AI officer?

In just three years, artificial intelligence has gone from a futuristic concept to a daily business tool. With the emergence of effective generative AI, companies from global brands to local family businesses have been racing to understand how this new technology can make their work faster, smarter, and more efficient.

Many large corporations have moved toward naming chief AI officers, or CAIOs. But for most small and midsize businesses, hiring someone with a seven-figure salary and deep technical know-how isn’t realistic — or necessary. The more important question isn’t whether you need a CAIO, but how you can train your existing leaders to all be thinking like one.

AI isn’t magic. It’s a set of tools that can help companies use data more intelligently, automate repetitive work, and uncover insights that might otherwise be missed. For small business owners, that means freeing up time, reducing costs, and improving customer experiences in very tangible ways.

Here’s where to start.

Start small, think strategically

You don’t need millions of customers to benefit from AI. What you do need is a willingness to experiment. Start by identifying one or two areas where your business spends a lot of manual effort, whether that’s sorting customer emails, scheduling appointments, managing inventory, or drafting marketing copy. Low-cost AI tools can help automate these tasks, giving your team more time to focus on higher-value work. The key is to approach it with the same curiosity and discipline you’d expect from a chief AI officer: test it, measure it, and refine it.

Personalization is the new differentiator

AI is at its best when helping businesses deliver personalized experiences. We’ve all seen how Netflix and Amazon recommend products or shows we actually like. That same principle applies to smaller operations too. A local retailer can use AI to track customer preferences and tailor promotions. A home-services company can predict when clients might need maintenance based on past visits. A small manufacturer can analyze supply-chain data to better forecast demand. When you start using AI to personalize service or improve decision-making, you’re no longer just keeping up — you’re setting the pace.

Build the right foundation

One mistake I see often is that companies jump into AI before they have the right data or team structure. Even the most powerful algorithms won’t help if your business doesn’t have reliable information to work with. That’s why I tell leaders: make sure you have “people who do math” at your company — whether that’s an analyst, an accountant, or a data-literate manager. Encourage them to experiment with AI tools, attend workshops, and share what they learn. You don’t need an advanced degree in computer science to be fluent in AI. You just need curiosity and data that you own!

Collaboration beats perfection

At Uber, where I led AI product, some of our most successful innovations came from partnering with teams or customers who simply wanted to solve a specific problem — reducing ride cancellations, improving driver matching, or optimizing pricing. Once we found a process that worked, we could apply it across other parts of the company.

Small businesses have a similar advantage: you can move fast and learn quickly. If something doesn’t work, adjust. The most effective AI efforts start with honest conversations. Ask your team (or even your customers) where AI could make their experience better. Then try it together.

AI will transform every industry, but its most profound impact may be on smaller businesses — the ones that can adapt fastest and innovate closest to their customers.

You may never have “chief AI officer” on your business card, but you can still think like one: curious about new tools, strategic about where to apply them, and bold enough to imagine how they can reshape your future. Because the real opportunity with AI isn’t just for Big Tech. It’s for every business that’s ready to work smarter.

• Birju Shah is a clinical assistant professor at Northwestern University’s Kellogg School of Management. He is a leading voice in AI development and integration.